Ethereum’s developers have been working to solve the Blockchain’s one major issue – Scalability.
Last month in September, the creator of Ethereum, Vitalik Buterin, published a post on Twitter announcing the technology behind Zcash could help “Mass-validate” around 500+ Transactions per second. That’s 30x Ethereum’s current capacity.
Current estimates say Ethereum processes roughly around 15-20 transactions per second because of a hard-coded limit in the computation per block according to a recent Coindesk article. At the moment, Ethereum isn’t sufficient enough to handle the all dApps (decentralized applications) with it’s million’s of users.
But this week, Vitalik Buterin presented another solution that he and other Ethereum researchers believe will scale the Ethereum Network to 17,000 transactions per second – putting it in competition with Visa’s transactional capacity. According to Visa, they currently process around 2,000 transactions per second with a peak-capacity of 56,000 transactions per second.
On October 5, 2018, Vitalik Buterin introduced this new scaling solution at an Ethereum conference in Paris that he and the co-creator of the Bitcoin Lighting Network, Joseph Poon, originally developed.
The idea behind this solution is to allow users to process transactions outside the main Ethereum network using a SNARK-based side-chain called Plasma; However, it hasn’t been tested yet, but Buterin says he is optimistic the new system will increase the efficiency and potential of the blockchain. Buterin said,
“The main advantage of this new development is that the amount of data to be downloaded will be reduced significantly.”
It’s also worth noting that with Ethereum’s looming scalability concerns, it’s biggest blockchain competitor, EOSio, has already peaked nearly 4,000 transactions per second by the time of this writing. The EOS blockchain also supports inter-chain communication, which means multiple blockchains could work in tandem as a single system to reach millions of transactions per second.
As mass-adoption of blockchain takes place over the coming months and years, scalability, or lack thereof, is going to become the ‘Make’ or ‘Break’ of a blockchain.
Scalability = Success